03.2 Investments in climate change projects

Investments in Climate Change
project

Wim Maaskant
BGP Engineers – The Netherlands
info@bgpengineers.com

Potential investments:

Indonesia has high potential for developing energy production from
renewable energy sources: sun, water, wind, biomass, geothermal
energy and energy efficiency.
Geothermal: Indonesia has a history of using geothermal energy for
heating purposes. The potential for geothermal energy production is
estimated at several thousands GWh per year. Currently the potential
is hardly explored.
Small hydro: There are more than thousands of potential small hydro
sites with small hydro plants from 45 kW up to 5000 kW. Therefore the
overall potential is very big.

Potential investments:

Wind: There are no wind turbines for energy production installed in
Indonesia. However, the potential for energy production using wind
power is estimated to be very favorable, especially in the central part of
the country.
Biomass: The technical potential of biomass (energy resource from
forests, agricultural residues and municipal waste) is very high.
Solar: As one of the sunniest countries in the region, Indonesia has an
annual solar energy value of thousands GWh.
Energy efficiency: large potential.

CDM, JI-projects, by
sector
N2O
4%
HFC
25%

Other
7%

Landfill
Gas
Capture
10%
Hydro
12%
Wind 7%

Forestry
(LULUCF)
4% Energy
Efficiency Animal
Waste
2%
18%

Biomass
7%

Project types (general):

District heating, fuel shift to biomass and waste management
sectors are able to generate substantial volumes of Carbon Credits
in Indonesia
Sector

Industrial energy efficiency (various)
Combined heat and power (CHP)
District heating energy efficiency
Fuel shift (fossil => biomass)
Waste management
Renewable energy (biomass, solar, hydro)

Project types in Private
sector:
Power plant upgrade (fuel shift, energy efficiency)
Combined Heat & Power (CHP, energy efficiency)
Waste management (Methane, energy efficiency)
Gas transport (Methane)

Transportation: bio-ethanol & biodiesel (Fuel shift)

Industrial energy efficiency (examples):
Combined Heat & Power (CHP)
Refurbishment of production units resulting in reduced specific
energy consumption (GJ/tonne product). Sectors: paper,
steel, cement, ceramics etc. (EU-ETS)
Fuel shift: use of biomass, biogas etc.
Renewable energy (wind, solar, hydro)
Boiler optimization
Reduction of N2O-emission (fertilizer industry)
Reduction og HCF emssions
Waste gas recovery; improved flaring; pipeline leakages

Waste management (examples):
Waste incenerators (baseline!)
Capture of methane from landfills, production of electricty
Recovery of methane from sludge digestors, production of
electricity
Waste water treatment (as alternative to direct discharge)

Sludge digestion (with recovery of methane)
Recovery of waste wood or other organic wastes (paper waste,
waste gases etc.)
Abatement of leakage from pipelines;
Agricultural enterprises: methane capture from digestion of
waste (pig, cow, chicken)

Transportation (examples):
Energy efficiency in public transport (metro, buses)
Bio-ethanol production
Bio-oil and biodiesel production

Other (examples):
Forestry (many obstacles)
Land use (many obstacles)

Project types in Public
sector:

Power plant upgrade (fuel shift)

Hydro power (renewables)
District heating networks (energy efficiency)
Waste water treatment plants (Methane)
Combined Heat & Power (CHP, energy efficiency)
Waste management (Methane, energy efficiency)

Project types in Public sector
(examples):
Power plant upgrade (fuel shift)
Hydro power (renewables)
District heating networks (improvement of distribution
stations, network refurbishment)
Waste water treatment plants (Methane, sludge digestion,
energy efficiency improvement)
Energy efficient buidings (programmatic CDM
Waste management (Methane, energy efficiency)
Use of wood for energy generation (programmatic)
Coal mine gas recovery